Romancing The Balance Sheet - Anil Lamba

101st of 2021 was Romancing The Balance Sheet by Anil Lamba. When that has been the bread and butter, there was no other go, but to grab it, when I heard about it. 

There were bulb on moments even for finance professionals, which make understanding Balance Sheet, easy for non finance professionals. 

Every person, whose actions have the power to affect the bottom line, is a finance person, and interestingly, accountants don't fall in this category. 

Divided into six parts the book covers:

1. Getting your basics right: The two basic Financial statements, what profit is - it is not money, how inventory impact profits, a closer look at the Balance sheet. When you have a dilemma between a common sense answer and an accounting answer, always trust your common sense. 
2. Managing your finance: Good financial Management by itself, cannot lead to success, but bad financial management can single handedly spell doom for any business  , The two golden rules are: (i) Never invest your money without ensuring that the assets you acquire can generate a return which is at least equal to the cost of your capital. (ii) Invest your money in such a way that the assets generate an inflow of funds before the liabilities demand an outflow. Improve profitability, learn to read your balance sheet, beware of the net working capital and the credibility trap. 
3. Maximizing your profit: It's all about Trading on Equity,  applying marginal costing principles and leverage analysis. Profit is an opinion, cash in the bank is a fact. 
4. Romancing the number: Fund flow analysis. Never use short-term funds for long-term purposes. 
5. Financially intelligent Organizations (Fios) If the concepts appeals and wish to get business certified, email anil@Iamconschool.com
6. Financial Literacy for all : When the individuals of a nation learn to manage their finance efficiently, the nation is bound to be prosperous. 

When you can hold a conversation with numbers, when you can talk to figures and make them talk back to you, when financial statements begin to lose their mystery, it is then and only then that you can begin to romance numbers.